If you are not applying customer suggestion tactics in the small business you are missing out on 25% of current sales. These days customers receive suggestions from businesses and other customers every step of the way. The trend has only increased in the last few years with the advent of Internet and social media. You can find online businesses suggesting that “you might also like these” based on what you have bought earlier. Your “friends” are also “recommending” you products and stories on Facebook. Suggestions can also be found in the physical world – sometimes in not so obvious ways. Have you looked at McDonald’s Combo Meal lately?
So how can suggestions help small business owners as well as customers?
Customer suggestions are a powerful way to improve sales by increasing the average ticket per customer. If the customer was going to buy only a cell phone before he will also buy a charger and a phone skin based on your suggestion. If suggestions increase sales, they can improve your profit margin even more. That is because the ancillary products that customers buy based on your suggestions have higher margin than the main product.
Suggestions can also speed up the ordering process in your business. When you have large number of items to choose from providing suggestions to customers can help them make decision quickly, thus helping you move the line faster. Finally, suggestions can help you sell those items that are not in high demand. Just try putting those items prominently on the front display and see how many customers buy them.
Now, don’t think that you are being evil by “steering” your customers to buy something they may not want. While there is a small amount of truth to this, majority of time suggestions help customers as much as they do small business owners. To begin with, suggestions help customers make choices quickly by reducing the clutter in front of them. These days customers are faced with so many varieties to choose from that they become confused when making a decision. Suggestions can help them come to a decision.
Suggestions also help customers try and find something new and improved. I am amazed at how many times I have found and bought something interesting from Amazon from their suggestions. Without suggestion many customers are likely to stick with “tried and tested” and miss out on other exciting opportunities. Those who do like to try new things suggestions can help reduce the risk because someone else (business owner) have already gone through the trouble of trying and testing it.
We will look at how you can apply the power of suggestions in your business as well as how other companies use this. In the meantime, may we suggest these additional articles for your reading pleasure?
How to improve sales with up sell and cross sell.
How to convert free samples into sales.
Practical ideas to generate buzz for your business.
